Financial Results 201112th September 201112 September 2011

Presentation to the Investment Analysts’ Society of EOH Holdings Limited’s Annual Results for the

period ended 31 July 2011period ended 31 July 2011

Agenda

▲Business overview• Jane Thomson• Ebrahim Laher• Rob Godlonton• Jehan MacKay• Johan van Jaarsveld

▲Financial review• John King

▲Highlights and the way forward• Asher Bohbot

Business Overview

Jane Thomson

EOH vision

To be the best technology and business solutions company to work for, partner with

and invest in

▲ Leader in technology and business solutions

▲ Largest implementer of enterprise solutions

EOH at a glance

▲ End-to-end offerings

▲ Strong black empowerment profile

▲ Operates in South Africa, Africa and UK

▲ Listed on JSE since 1998▲ Listed on JSE since 1998

▲ Over 3 200 people

EOH board

Lucky KhumaloAsher Bohbot John KingJane ThomsonDion Ramoo

Prof. Tshilidzi MarwalaRob SporenPumeza BamDr. Mathews Phosa Tebogo Skwambane

EOH executive committee

Asher Bohbot

Gary Lawrence Jane Thomson Johan Cloete Johan v Jaarsveld

Ebrahim LaherDion RamooBrian GubbinsAndrew Krause

Jehan MacKay

Zunaid MayetRob GodlontonPumeza BamJohn King

y y

What we do

▲ We develop business and technology solutions with our clients to help them

• Increase revenue

• Increase service delivery

• Increase efficiency

• Reduce cost

• R d i k• Reduce risk

Industries served

▲ We provide solutions in the following industries

• Financial ServicesFinancial Services

• Telecommunications

• Mining

• Manufacturing

• Public Sector

Operating model

Portfolio

• Business operations improvement

• IT strategy IT hit t

• Enterprise systems• Information management• Security management

IT t d

• Managed serviceso On-siteo Hosted

Cl d• IT architecture• Project management• Change management

• IT management and optimisation

o Cloudo Infrastructure, application,

technical & office • Public sector managed

services • BPO• Facilities management

Technology partners

Exclusive representative for Sub-Saharan Africa

Exclusive representative for Sub-Saharan Africa

Gold certified Microsoft partner

Certified advantage partner

SAP service partner IBM premier business partner Platinum partner

Technology partners

INFOR distributor and implementation partner Value added reseller Exclusive Southern

African distributor Mimecast partner

Gold partner and distributor in Sub-

Saharan Africa

Exclusive Blue Coat distributor in South Africa

Largest SYSPRO distributor in Africa

Abridged client list

Portfolio

• Business operations improvement

• IT strategy IT hit t

• Enterprise systems• Information management• Security management

IT t d

• Managed serviceso On-siteo Hosted

Cl d• IT architecture• Project management• Change management

• IT management and optimisation

o Cloudo Infrastructure, application,

technical & office • Public sector managed

services • BPO• Facilities management

Ebrahim Laher

Enterprise systems

The engine room of your organisation

▲ Finance, HR, Procurement ▲▲ Core banking, supply chains▲ Customer relationship management ▲ Executed implementation in all industry sectors▲ Biggest range of application

Reinvents your business with best practice process management

Enterprise systems, cont.

▲ Solid implementation track record in all industry sectors

▲ From shop floor to boardroom

▲ Biggest range of applications

▲ Industry and process templates

▲ Delivering over the cloud

Enterprise systems, cont.

▲ SAP

▲ Oracle

▲ Infor

▲ Microsoft

▲ Syspro

Information management

Optimise your information assets

▲▲ Information strategy development

▲ Enterprise performance management

▲ Enterprise content management

▲ Master data management

▲ Business analytics

Information Management, cont.

▲ Hyperion

▲ Cognos

▲BI

Data Marts

ApplicationsSingle focus areas in the data Single focus areas in the data

▲ Business objects

▲ SAS

▲ Microsoft BI

Applications

Master Data Management

gflow will deliver zero benefits

gflow will deliver zero benefits

Rob Godlonton

EOH and the cloud

Infrastructure as a Service Platform as a Service

(PaaS)Software as a Service

(SaaS)(IaaS) (PaaS) (SaaS)

Servers Hosting Enterprise Systems

Storage Network Mail – Hosted

Desktop Data Archiving Mail – Archiving

Workspace Unified Communication Document Management

H t d PABX M ioud

Con

sulti

ng

Hosted PABX Messaging

Service Management Platform

Disaster Recovery Platform

Clo

EOH cloud services

▲ Virtualisation

▲ Storage as a service

▲ Infrastructure as a service

▲ Platform as a service

▲ Software as a service

Everything as a Service

Jehan MacKay

Structured Cabling

Service Desk Management

60 000 Points

30 000Calls/month

Service offerings

Cabling

Microsoft Solutions

Device Deployments

Converged Networks

Management

Desktop Management

Systems Management

Datacenter Management

InfrastructureManagedServices

Points

3 000 Servers

35 000 Devices

6 000 Switches

Calls/month

50 000Desktops

2 000Servers

6 000 000Email/month

Managed Infrastructure Managed Support

Infrastructure Training

Network Management

18 000 Learners

4 000Switch/Router

Footprint

94 Points of Presence 770 000 km/month

Johan van Jaarsveld

KPOKnowledge Process Outsourcing

Legal ServicesBusiness Consulting /

Analytics / Market Intelligence

ITO Information Technology

OutsourcingSoftware R&D

Banking/ Financial Service / Insurance

Manufacturing

Horizontal Activities Strategic Activities Vertical / Industry Activities

Business process outsourcing

g

BPOBusiness Process Outsourcing

ERMEnterprise Resource

Management

HRMHuman

Resources Management

CRMCustomer

Relationship Management

Software

Desktop Management

ERP

Application Development

Application Integration

IT ConsultingTelecomm

Energy

Travel / Transport

Health / PharmaValu

e Ad

ded

Finance & Accounting

Procurement, Logistics and Supply Chain Management

Content / Document

Management

Training

Talent Management

Payroll

Recruitment

Marketing & sales

Contact Centre

Infrastructure

Application Management

Network Management

Infrastructure Management

Retail

Public Sector

Education

Other

Growth strategy

▲ Grow our Business Process Outsourcing business and leverage the existing

• Applications• Infrastructure• Customers

▲ Business functional areas:• Human Resources Outsourcing• Legal Process OutsourcingLegal Process Outsourcing• Healthcare Solutions• Educational Services Solutions• Cross Enterprise Administration Services

Financial ReviewJohn KingJohn King

Condensed Consolidated Statement of Comprehensive Income for the year to 31 July 2011

July2011

% Change

July2010

July2009

(R'000) (R'000) (R'000)Revenue 2 428 973 43 5% 1 692 421 1 235 568Revenue 2 428 973 43,5% 1 692 421 1 235 568Cost of sales (1 528 392) (1 085 309) (797 421)Gross margin 900 581 607 112 438 147Results from operating activities 232 879 147 899 97 893

Investment income 9 157 8 213 10 602Finance costs (7 646) (6 353) (4 026)Net impairment of assets (353)Net impairment of assets - - (353)Profit before taxation 234 390 56,5% 149 759 104 116Taxation (85 986) (51 980) (36 528)

Profit for the period 148 404 51,8% 97 779 67 588

Condensed Consolidated Statement of Comprehensive Income for the year to 31 July 2011

July2011

%Change

July2010

July2009

Total shares in issue ('000) 95 389 79 737 75 817Weighted average shares in issue ('000) 74 985 66 686 64 477Total diluted shares in issue ('000) 85 342 73 486 74 221

EPS (cents) 197,9 35,4% 146,2 106,8Diluted EPS (cents) 173,8 31,0% 132,7 92,8HEPS (cents) 197,6 35,2% 146,1 108,0Diluted HEPS (cents) 173,6 30,9% 132,6 93,8( )

Condensed Consolidated Statement of Financial Position

July July July2011 2010 2009

(R'000) (R'000) (R’000)ASSETSNon-current assets

Property, plant and equipment 80 320 52 652 37 170Goodwill and intangible assets 550 355 324 142 199 228Other financial assets 23 436 25 061 4 217Deferred taxation assets 38 427 28 749 26 692

Current assetsInventories 30 662 10 107 7 873Trade and other receivables 575 488 394 871 343 455Cash and cash equivalents 321 507 266 671 206 877

Total assets 1 620 195 1 102 253 825 512

Condensed Consolidated Statement of Financial Position

July July July2011 2010 2009

(R'000) (R'000) (R’000)EQUITY AND LIABILITIES

Equity attributable to owners of the parent 709 940 464 188 319 346Non-controlling interest 1 131 (259) (527)

Total equity 711 071 463 929 318 819Non-current liabilities

Finance lease obligations 3 714 174 71Other financial liabilities 145 988 21 314 20 182Deferred taxation liabilities 618 4 714 4 703

Current liabilitiesTrade and other liabilities 677 226 521 141 399 353Deferred revenue 68 261 49 571 41 066Current taxation payable 13 317 41 410 41 318

Total liabilities 909 124 637 894 506 693Total equity and liabilities 1 620 195 1 102 253 825 512

Net asset value per share (cents) 744,3 582,2 421,2Net tangible asset value per share (cents) 167,3 175,6 158,4

Condensed Consolidated Statement of Cash Flows for the year to 31 July 2011

July 2011 July 2010 July 2009(R'000) (R'000) (R'000)

Net income before tax and separately disclosed items 234 391 149 758 104 116

Non-cash items 84 496 31 838 19 531Non cash items 84 496 31 838 19 531Working capital changes (53 612) 32 534 8 854

Cash generated by operating activities 265 275 214 130 132 501Investment income 9 157 8 213 10 602Finance costs (7 646) (6 353) (4 026)Taxation paid (129 687) (55 837) (22 495)Dividends paid (25 223) (19 109) (15 253)

Net cash inflow from operating activities 111 876 141 044 101 329Net cash (outflow) / inflow from investing activities 10 284 (20 567) 19 311Net cash (outflow) / inflow from investing activities 10 284 (20 567) 19 311Net cash (outflow) from financing activities (67 324) (60 683) (32 902)Net cash movement for period 54 836 59 794 87 738Cash at beginning of period 266 671 206 877 119 139Cash at end of period 321 507 266 671 206 877

50

Dividend

Dividend distribution

10

20

30

40

50

2025

3036

48

02007 2008 2009 2010 2011

▲Dividends distributed at financial year end only

▲Dividend cover : 4

Highlights and The Way ForwardAsher Bohbot

To R2,429 bn43,5%

To R234,4 m56 5%

Revenue

PBT

Financial highlights

56,5%

To 197,9 cents35,4%

To 197,6 cents35,2%

PBT

EPS

HEPS

To 48 cents33,3%Dividends

To R321,5 m20,5%Cash

Revenue growth (Rm)

2 428,9

1 692,4

1 235,6

950,9

703,7

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

84,1 114,3 176,0

503,2420,2

299,5

Earnings growth (HEPS – cents)

197,6

146,1

108,096,8

78,8

63,452,7

42 8

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

20,526,2 33,1

42,8

Segmental contribution

Services60%

Software19,7%

Infrastructure20,3%

▲Best PeopleTo attract, develop and retain the best people in all our chosen skill sets

▲

EOH philosophy

▲Partner for LifeTo develop lifelong mutually beneficial partnerships with both our customers and technology partners

▲Right 1st Time To ensure excellent, professional planning in all we do

▲Sustainable Transformation▲Sustainable TransformationTo transform and manage diversity

▲Profitable GrowthTo grow in a sensible way in the best interest of our shareholders

• Equity30.7% black shareholding5.1% black women ownership

Transformation update

• Board representation60% black

• Employment Equity 53% black

• Preferential Procurement138%

• Skills DevelopmentSkills DevelopmentEOH Academy

• Enterprise Development3% of NPAT

• Corporate Social Investments 1% of NPAT

Financial and market position

▲Strong financial position

▲40% + growth over 13 years

▲3 200 people

▲Recognition as a leading IT and Business services provider

▲Strong brand

▲Great people, strong managementp p , g g

▲Strong value system

▲Healthy, positive work environment

▲Entrepreneurial business model

Our industry

▲Sizable IT industry R75B – growing at 7.5%

▲IT spending is growing

▲▲Major move from in-house to IT service providers

▲Cloud is creating new and exciting opportunities

▲Bandwidth is available, major enabler

▲Everything as a service (EAAS) is here

▲Industry consolidation

▲Telco’s entering into commodity space

▲Convergence of technology and services

FY 2012 drivers for growth

▲One EOH Brand – great enabler

▲Managed services / Cloud computing

▲Aggressive focused go to market strategy▲Aggressive focused go-to-market strategy

▲BPO expansion

▲Security business

▲Invensys business

▲Facilities management business

▲Public sector growth

▲Africa opportunities

▲Acquisitions

Supported by a strong agenda of people and transformation

EOH job creation initiative▲8m people unemployed – 8m potential clients

▲Government alone cannot take responsibility

▲Business needs to provide leadership and do more

▲We need to bring back off-shored jobs and do more off-shoring

▲EOH is forming a team that will work with our top 300 clients and

Business Partners to devise ways and means to:

• Generate ideas and meaningful plans

• Develop and train young people, new skill = new job

• Work jointly with Government Departments in mobilising existing and

new job creation initiativesBusiness needs to lead and get actively involved in South Africa

Thank You